Berger Paints India (BERGEPAINT) Q4 02/03 earnings summary

Executive summary

• FY03 sales rose 11% YoY to Rs 6,684.2m, versus industry growth of ~8%; operating profit before depreciation, interest and exceptional items increased 15% to Rs 622.5m.

• PBT increased 31% to Rs 452.3m, while PAT rose 6% to Rs 334.2m; proposed dividend was 60%, or Rs 6 per share.

• Decorative demand improved, while input-cost inflation and intense competition pressured margins in H2; management expected current-year improvement in growth and profitability, barring unforeseen circumstances.

Financial highlights

• Sales were Rs 6,684.2m versus Rs 6,016.5m in FY02; net sales, after excise, were Rs 5,822.8m versus Rs 5,249.5m.

• Operating profit before depreciation, interest and exceptional items was Rs 622.5m versus Rs 542.9m; PBT before exceptional items was Rs 452.8m versus Rs 355.5m.

• PAT was Rs 334.2m versus Rs 313.9m; FY03 included Rs 0.5m expenditure under the voluntary retirement scheme, compared with Rs 9.2m in FY02.

• Consolidated sales were Rs 7,144.4m and consolidated PAT was Rs 336.5m; consolidated EPS was Rs 12.66 versus Rs 11.70.

Outlook and guidance

• Management cited encouraging year-to-date performance and expected improvement in growth and profitability in FY04, barring unforeseen circumstances.

• Economic recovery and government focus on housing and infrastructure were viewed as supportive of paint-industry demand.